What Is Hedara (HBAR)?
Hedera Hashgraph, also known as Hedera, aims to offer a scalable, secure platform for decentralised applications. Hedera uses a unique way to organise information that’s similar to blockchain but differs in some key ways, which the founders say enhances scalability, speed, and efficiency. They claim this could make it ideal for use across industries such as healthcare, financial services, supply chain management and decentralised finance (DeFi).
Note: Luno does not currently support sending or receiving HBAR, but you can still buy or sell it like any of our other cryptocurrencies. This decision has been made in order to ensure there are appropriate controls in place to maintain the highest standards of investor protection.
Who Created Hedera?
Hedera was founded by American technologists Leemon Baird and Mance Harmon in 2017. They concurrently launched Swirl Labs, the firm that developed Hedera’s foundational technology. With extensive backgrounds in software development and technology, both founders possess vast expertise in AI, security, defense and identity.
How Does Hedera Work? - Hashgraph Gossip Protocol
Hedera uses a unique technology called a directed acyclic graph (DAG). In this structure, a network of computers (nodes) run in parallel to allow connections between each other to be verified at the same time. This differs from traditional blockchains, where there is a single chain of linear, sequential blocks. Imagine traditional blockchains like a long line of people waiting to buy tickets at a concert. Each person represents a transaction, and they have to wait their turn in line to get their ticket (transaction confirmed). Once they get their ticket, they're done, and the next person can go. This process happens one after the other, in a linear sequence. Now, picture a DAG like a group of people sitting around a table, passing items to each other. Each person can receive items from multiple people at once and pass them on to others. There's no specific order they have to follow, and they can all work together at the same time. This is how transactions work in a DAG. They can happen simultaneously and aren't restricted to a strict order like in a traditional blockchain.Traditional blockchain networks have historically been challenged with achieving a fine balance between decentralisation, security and scalability, a challenge known as the “blockchain trilemma.” In response to these challenges, Hedera has developed its own version of a DAG, known as the Hashgrah Gossip Protocol.
Proof Of Stake (PoS)
Hedera utilises a Proof of Stake (PoS) consensus mechanism, enabling users to stake HBAR to help validate transactions and receive rewards for enhancing security of the network. Unlike traditional PoS systems, Hedera’s staking mechanism automatically stakes a users entire account balance without the need for users to select a specific amount of HBAR. This approach avoids tokens needing to be locked up or slashed as penalties.
What Does Hedera Do?
An example of one use case for Hedera Hashgraph is in supply chain management. In supply chain management, businesses need to track products as they move through various stages from production to delivery to consumers. Using Hedera's fast and secure network, companies can create a transparent and tamper-proof record of each step in the supply chain. This record can include information such as the origin of raw materials, production processes, transportation details, and delivery times. By recording this information on Hedera, companies can improve transparency, reduce fraud, enhance traceability, and ensure compliance with regulations. Additionally, stakeholders throughout the supply chain, including manufacturers, distributors, retailers, and consumers, can access real-time data, leading to better decision-making and increased trust in the supply chain ecosystem.
What Is The Native Cryptocurrency Of Hedera?
Hedera’s native cryptocurrency is called HBAR, which stands for Hedera Hashgraph Token. HBAR can be used to pay for network services such as transaction fees and smart contract execution. Furthermore, HBAR is used for staking, allowing HBAR holders to participate in the consensus mechanism of the network and earn rewards by validating transactions. HBAR holders can also vote on proposals and influence decisions related to network upgrades and changes.
